Wooing the New American Consumer

There's no doubt about it, American consumers have been profoundly altered by the recession in a way that will undoubtedly have a lasting effect on how they shop and spend.

A new report released by Decitica, "Marketing to the Post-Recession Consumers," gives one of the first glimpses into the diverse reactions to the recession and how it has changed consumers spending habits.

While age, gender, and income continue to affect the way consumers respond to marketing, today's shoppers have become much more savvy in how they react to marketing messages.

Decitica has identified four new distinct consumer segments: Steadfast Frugalists, Involuntary Penny-Pinchers, Pragmatic Spenders and Apathetic Materialists.

1. Steadfast Frugalists comprise nearly one-fifth of American consumers spanning across all income and age groups. The core value of the Steadfast Frugalists is self-restraint. They are the least brand loyal and expect their new budget conscious shopping behaviors to stay with them for a long time. This group takes pride in their frugal attitudes.

2. Involuntary Penny-Pinchers have been forced to embrace thriftier shopping methods. Unlike the Steadfast Frugalists, they're more flexible in their decision making and less likely to restrict themselves to buying store brands or generic labels. As a group, they have average household incomes of less than $50,000, are largely in their 30s and 40s, and are primarily women (six in 10). The vast majority have been scared into tightening their budgets by the recession and are more worried about the future than the other groups.

3. Pragmatic Spenders have curbed their spending (for now) but are expected to resurrect their past spending habits. As a whole, they have higher spending power, they are primarily male (six in 10), and they are largely individuals in their 60s from the Northeast and West. More than one-third of people with household incomes greater than $75,000 are in this group.

4. Apathetic Materialists tend to be the least changed by the recession. As younger consumers under the age of 40, with most in their 20s, this group group is seemingly unaffected by price and the long-term aspects of the recession.